STRATEGIC INNOVATION AND PERFORMANCE OF STATE CORPORATIONS IN HEALTH SECTOR IN KENYA
Abstract
Purpose: The primary objective of this study was to investigate how strategic innovation affects the performance of state corporations in health sector in Kenya. Specifically, the study also sought to examine the effect of disruptive, incremental, business model, and sustaining innovation on the performance of state corporations in health sector in Kenya.
Methodology:
Methodology: The study adopted a descriptive research design and the target population was 112 directors of finance, planning &strategy, information and communication technology and public relations directorates in all the 28 state corporations under the Ministry of Health in Kenya. Data was collected by use of questionnaires and analyzed by use of use of both descriptive and inferential statistics was employed with the help of statistical software known as Statistical Package for Social Sciences (SPSS version 28). Diagnostic test was conducted to ensure the assumptions of the linear regression model are not violated.
Findings: The R-squared value for the regression model was 0.681, which implies that 68.1% of the variance in the performance of state corporations in Kenya's health sector was explained by disruptive innovation, incremental innovation, business model innovation and sustaining innovation. The multiple regression analysis showed that disruptive innovation (p-value=0.09), incremental innovation (p-value=0.027), business model innovation (p-value=0.011) and sustaining innovation (p-value=0.001) had a positive and significant effect on the performance of state corporations in health sector in Kenya.
Unique Contribution to Theory, Practice and Policy: The study recommends that state corporations in the health sector strengthen monitoring and evaluation of digital solutions to align innovation with strategic goals. They should institutionalize feedback loops and conduct workflow audits to support incremental innovation. Additionally, corporations should enhance consumer segmentation using data-driven insights to personalize services and increase value. Lastly, sustaining innovation requires continuous integration of customer feedback into product development and allocating resources for ongoing improvements. The study found that disruptive innovation, incremental innovation, business model innovation and sustaining innovation collectively account for 68.1% of the variation in performance of state corporations in the health sector. Future research should also consider examining additional factors that may influence the performance of state corporations, such as organizational culture, leadership styles, digital transformation capabilities, and stakeholder engagement strategies.
Keywords: Strategic Innovation, Disruptive Innovation, Performance, State Corporations
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